Sale prices of the most expensive units in these markets also spiked up
Attesting to the segment’s evergreen status, condo units in the $1-2 million price range have attracted a healthy proportion of buyers in Canada’s hottest housing markets over the past few years, according to the 2018 RE/MAX Spotlight on Luxury Report.
In Toronto, luxury condo sales grew by a relatively modest 2% year-over-year, while Vancouver had a 6% uptick.
The sale prices of the most expensive units in the leading markets also went up. In Toronto, the priciest condo sold for $11.5 million this year, sharply going up by 44% from 2017’s $8 million. On the other hand, Vancouver’s most expensive condo sold for $11.7 million, increasing by 34% from $8.7 million in 2017.
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Christopher Alexander, executive vice president and regional director of RE/MAX INTEGRA Ontario-Atlantic Canada Region, attributed the luxury sector’s robustness to pronounced interest from two notable demographics.
“Many Canadian Baby Boomers saw the strength of the real estate market over the past two years as an opportunity to cash-in, downsize and upgrade into the luxury market for retirement,” Alexander explained.
“We’re also seeing an emerging trend of Millennials entering the lower end of the luxury condo market, as they tap into their inheritance to invest in this popular property segment.”
In stark contrast, sales of single-detached housing in the two cities continue to feel pressure from the foreign buyers’ tax. Luxury single-detached activity went down by 37% in Toronto and 31% in Vancouver.
“The foreign buyers’ tax has impacted overseas activity, opening more opportunities for local buyers to enter the luxury market,” RE/MAX of Western Canada executive vice president Elton Ash said.
“As a result, local buyers are driving demand for luxury condos going into 2019, which is welcome news for developers in major city centres looking to build more properties.”
